Road to ruin: More than half British motorists shocked by cost of buying and running a second-hand car

More than half of motorists said that the total cost of buying and running a second-hand car turned out to be a lot higher than they anticipated, according to a Government-backed body.

Research from the Money Advice Service shows that 56 per cent of people who have bought a second-hand car in the last two years underestimated the cost of maintenance, repairs, insurance and fuel.

One in five drivers have resorted to going into debt just to keep their vehicle on the road, while one in four of the 3,000 people surveyed now has regrets about their purchase. Many of those admitted they had not worked out whether it was really affordable or that the purchase price was too much in the first place.

Not such a great deal: According to the Money Advice Service, more than half of people underestimated the costs associated with buying a car, and one in five drivers (20 per cent) have resorted to going into debt just to keep their vehicle on the road

The MAS survey looked at people who have bought a second-hand car since 2012.

Of those drivers who have found their car running costs to be higher than they had initially thought, nearly one third (31 per cent) have had to cut back on family treats to make up the shortfall, one in six (16 per cent) have been forced to delay repairs that needed doing in their house and one in eight (12 per cent) have struggled to meet key household bills such as food and rent in order to keep their car going.

The MAS, which is an independent body set up by Government to offer money tips, has launched a new online 'car costs calculator' to help motorists to shop around for a car that suits their budget.

The calculator will enable people to compare the overall annual expense of running different car models before they make their final purchase.

% of Drivers caught out by car running costs

Scotland 49 per centNorthern Ireland 61 per centWales 55 per centEast of England 51 per centEast Midlands 54 per centLondon 73 per centNorth East 49 per centNorth West 56 per centSouth East 53 per centSouth West 55 per centWest Midlands 58 per centYorks and the Humb 55 per centUK 56 per cent

Up to three cars can be compared at the same time.

The tool, which can be found at moneyadviceservice.org.uk/car-costs-calculator, allows people to type in the number plate of the car they are considering buying and it will then indicate how expensive the car will be to tax, fuel and insure, as well as how its value is likely to depreciate.

Researchers found that many people are 'falling at the first hurdle' when buying a car, with nearly one in five (18 per cent) saying they had typically gone over budget when they first made their purchase, to the tune of £1,815 typically.

Drivers in Scotland and North East England were more likely to have set themselves a realistic budget for the overall cost of running their car, with just under half (49 per cent) of people in both of these places saying their running costs were more than expected.

In Wales, this figure was broadly similar to the UK average, at 55 per cent, and in Northern Ireland it was higher than average, at 61 per cent.

Londoners were the most likely to have underestimated their costs, with 73 per cent of people there saying they had surged to higher-than-expected levels.

Younger drivers are also generally much more likely to have been over-optimistic about the overall cost of running their car, the research suggests.

While 26 per cent of motorists said the fuel costs for their car had turned out to be higher than expected, this increased to 40 per cent of 18 to 24-year-olds.

Burning money: Reseach conducted by the Government-backed body showed that 56 per cent of people who have bought a second-hand car in the last two years underestimated the cost of
maintenance, repairs, insurance and fuel

Around 41 per cent of those in the 18 to 24 age group also found the cost of maintaining their car to be more than they expected, a figure which was 26 per cent for drivers generally.

Younger drivers were twice as likely to say their car insurance had turned out to be more costly than expected, with 46 per cent of 18 to 24-year-olds saying this compared with 23 per cent of people generally.

Nick Hill, a money expert at the MAS, said: 'I'd urge anyone planning on buying a car not only to set a budget for the initial cost, but to also look at total affordability and do their research in terms of what it's going to cost them to run, repair and maintain over the long term.'

Falling petrol prices are failing to kick-start more car use

A poll of more than 18,000 AA members last month showed that just 7 per cent were more relaxed about prices at the pumps and were using their car more than a year ago.

And as many as 57 per cent said they were still in a car-travel rut and were adopting fuel-saving techniques despite lower prices.

The Government figures showed that UK petrol consumption in the first three months of this year was at a record low at 3.126 billion tonnes, compared with 3.259 billion tonnes in the January-March 2013 period.

Diesel sales in the first three months of this year were up 3 per cent.